© New Zealand Broadcasting School 2021

Surprise rebound in dairy prices

Ella Stokes

Dairy farmers can be a little more confident following a rise in dairy prices.

Prices at today's global dairy trade auction made a surprise rebound when New Zealand's main export whole milk powder, lifted 2.9 per cent, to US$2855 per metric tonne.

This followed a drop of more than 12 percent at the previous auction on March 7.

Federated Farmers dairy industry chairperson Andrew Hoggard said it was a good result, considering the futures markets predicted a 5 to 6% decline in prices. 

Hoggard said it can give farmers confidence that next seasons starting price will be a reasonable one and will be above some of the tough prices that had been experienced in the last couple of years. 

One global trade event is not going to make a considerable difference, he said. 

"One GDT event is like one over in a cricket game it can be a good over or it can be a bad over, it doesn't mean you're going to win the game. But, if you can get enough good overs in a row it can give you confidence you're going to get a good result" 

He said this increase in prices is like a good over and hopefully going forward,  will help to maintain high prices.  

He explained that you are not going to be able to determine whether its going to have an impact on the entire season as the overall result is based on the averages of a lot of these GDT events

He said we have had a positive event so if we get more favorable events then the cumulative effect is positive.